KLSE Daily: remains weak

Market momentum remains weak. We continue to look for the upside at 889-890. Downside support remained at 868-867 followed by 850-848.

FKLI Daily: more room to downside potential

Market broke out from the triangle to end with double digit losses. However, we can see a good defend at 862.5-863.5. As for now, immediate resistance is at 875.5-877 followed by 881-883.

FCPO Daily: end of consolidation phase

It's the end of consolidation phase following 1500 mark failed to defend. Looks market may continue its downside move in near term. We now look at the resistance at 1496-1505 (gap left over today) followed by 1545-1565. For downside, support is pegged at 1391-1358 followed by 1331.

Trader's Comment: Palm oil futures ended RM59 lower after recovered some of its earlier losses

Palm oil futures ended RM59 lower after recovered some of its earlier more than 5 % losses. Benchmark Jan09 initially open RM56 lower at 1483 following overnight NYMEX crude oil which settled more than $3 lower, coupled with lower CBOT soy complex. CPO then immediately tumbled down to hit intra day low of 1435 during the afternoon session, as NYMEX crude oil trade below $55 a barrel (which is also a 22-month low) at Asian time zone. ECBOT and Dalian palm also follow suit. Nevertheless, CPO prices encountered strong short covering activities in the later part of 2nd session. Benchmark Jan09 rebounded sharply but failed to reach today’s left over gap. It hit the intra day high at 1496 before it settled at 1480, as traders began to speculate on the decision of OPEC members to cut output by year-end.

Breaking News-RTRS-UPDATE 1-China think-tank cuts '08 soy output estimate

BEIJING, Nov 12 (Reuters) - A Chinese grain think-tank revised downward its forecast for the country's 2008 soybean output by 1 million tonnes to 16.5 million tonnes due to lower yields in the country's largest soybean area.
The projection was still 30 percent higher than last year's output, according to the report by the China National Grain and Oils Information Center (CNGOIC).

Breraking News-RTRS-Australia seeks permanent ban on naked short selling

CANBERRA, Nov 13 (Reuters) - Australia proposes to permanently ban naked short selling of stocks in response to the global financial crisis, and will pass laws for more disclosure for covered short selling, Corporate Law Minister Nick Sherry said on Thursday.
Sherry said the government would also propose increasing regulation and supervision of ratings agencies.
The proposals will go before parliament today for debate.

Trader's Highlight

DJI-NEW YORK, Nov 12 (Reuters) - U.S. stocks plunged on Wednesday after a shift in how the U.S. government will use its $700 billion bailout fund fed uncertainty and oil prices slid to 21-month lows on fears of a deep global recession.

U.S. Treasury Secretary Henry Paulson said he was backing away from buying troubled mortgage assets and would focus on the capital needs of both banks and non-bank financial institutions.

The Dow Jones industrial average <.DJI> closed down 411.30 points, or 4.73 percent, at 8,282.66. The Standard & Poor's 500 Index <.SPX> was down 46.65 points, or 5.19 percent, at 852.30. The Nasdaq Composite Index <.IXIC> was down 81.69 points, or 5.17 percent, at 1,499.21.

NYMEX-NEW YORK, Nov 12 (Reuters) - U.S. crude futures tumbled on Wednesday amid a bleak demand forecast from the government and as Wall Street skidded again, along with other major equities markets, on deepening economic worries.

A stronger dollar also pressured oil. More indications that OPEC is considering another output cut, if oil prices keep falling, failed to stem the day's slide.

On the New York Mercantile Exchange, December crude settled down $3.17, or 5.34 percent, at $56.16 a barrel, the lowest since prices ended at $54.01 on Jan. 29, 2007. It traded from $55.94 to $59.50, but in post-settlement trade the
day's low extended to $55.62, the lowest since prices hit $53.82 on Jan. 30, 2007.

CBOT-SOYBEANS - November down 22-3/4 cents at $8.85-1/4 per bushel; January down 21 at $8.95.

Following weak crude oil, with mounting worries that a global recession may trim demand for soy.

CBOT-SOYOIL - December down 1.15 cents at 32.58 cents per lb. Pressured by weak crude oil, declines in soybeans.

FCPO-JAKARTA, Nov 12 (Reuters) - Malaysian palm futures closed nearly 3 percent lower on Wednesday after recouping some early losses on short-covering, traders said.

The early sell-off was sparked by crude oil's extended losses after settling below $60 for the first time in 20 months on Tuesday on demand worries, traders said.

The benchmark January contract on the Bursa Malaysia Derivatives Exchange fell 47 ringgit, or 2.96 percent, to 1,539 ringgit ($429) per tonne. The contract hit a low of 1,505 ringgit per tonne earlier.

REGIONAL EQUITIES-BANGKOK, Nov 12 (Reuters) - Southeast Asian stocks dropped on
Wednesday, with financials such as DBS Group pulling Singapore down for a second day and energy shares like PTT and Banpu helping to send the Thai market to its lowest in over a week.

Malaysia's index <.KLSE> slid 0.48 percent, the second day of falls, Jakarta shares <.JKSE> lost 0.74 percent and Vietnam shares <.VNI> ended 2.67 percent lower at a two-week low. But Philippine shares <.PSI> eked out a 0.03 percent gain.

Trader's Comment: CPO futures ended lower after trading in a roller-coaster manner

CPO futures ended lower after trading in a roller-coaster manner, as crude oil fell below $60. Benchmark Jan09 initially open RM44 lower at 1542, tracking overnight NYMEX crude oil, which settled below $60 a barrel since March 2007, and also a lower CBOT amid stronger dollar and weakening equities. CPO prices then bounced back and hit intra day high at 1563, but failed in its attempt to close yesterday’s left over gap. It then fell to the day low of 1505. During the early 2nd session, some covering activities emerged at the lower end, and sent prices rebounded to 1551. Later it hovered mostly between 1545-1515 before it settled at 1539, down RM 47. Market sentiment remained weak due to crude oil trading below $60, and also easier underlying cash market.

DJI Daily: downtrend resume

A clearer direction had seen after DJI breakout from the triangle formation. Looks downtrend likely to continue in near term. Resistance and support remained at 9794-9653 and 8143-7882 level respectively.